The world’s second-largest miner stated the deal demonstrates its dedication to construct its battery supplies enterprise and strengthens its portfolio for the worldwide power transition.
Rincon is a big undeveloped lithium brine mission that may use a direct, low-cost extraction expertise that has the “potential to considerably improve lithium recoveries” in comparison with photo voltaic evaporation ponds, Rio stated, including {that a} pilot plant was at the moment operating on the website.
In accordance with Rincon Mining, which has developed the mission and expertise since 2009, the novel extraction methodology permits acquiring the battery metallic from uncooked brine in under 24 hours.
The mission, Rio stated, has the potential to have one of many lowest carbon footprints within the business that may assist ship on Rio’s dedication to decarbonise its portfolio.
The corporate stated that market fundamentals for battery grade lithium carbonate are robust, with lithium demand forecast to develop 25-35% a yr over the following decade. And EV gross sales are on observe to hit as much as 55% of the world’s complete gentle autos gross sales as early as 2030, reaching about 65 million items.
This implies, Rio has stated, that producers would want about three million tonnes of lithium, in contrast with the roughly 350,000 tonnes they eat right now. Present operations and tasks mixed, nonetheless, are slated to contribute a million tonnes of lithium, the miner has famous.
Filling the hole
Rio Tinto estimates that dedicated provide and capability expansions will contribute solely about 15% to demand progress over the 2020-2050 interval. The remaining 85% would want to return from new tasks.
“Filling the provide hole would require over 60 Jadar tasks,” the corporate’s head of economics Vivek Tulpule said in October.
“This acquisition is strongly aligned with our technique to prioritise progress capital in commodities that assist decarbonization,” chief govt Jakob Stausholm said in the statement. “The Rincon mission holds the potential to ship a big new provide of battery-grade lithium carbonate, to seize the chance provided by the rising demand pushed by the worldwide power transition.”
Rio dedicated $2.4 billion in July to its Jadar lithium mission in Serbia, which has ignited protests by environmentalists over alleged water and land air pollution the mine would generate.
The mining large allegedly attempted to buy in 2020 a $5bn stake in Chile’s Chemical and Mining Society (SQM), the world’s second largest lithium producer.
The funding would have supplied the Rio Tinto foothold within the booming battery metals sector, although it already holds key copper belongings and the crimson metallic can also be utilized in EVs.
